Carbon Dioxide Removal Purchase Program.

Senator Caballero's carbon dioxide removal initiative establishes a $50 million competitive grant program to accelerate development of atmospheric carbon removal technologies in California. The program, administered by the State Air Resources Board, will fund projects across multiple categories including direct air capture, biomass carbon removal and storage, enhanced mineralization, and marine carbon dioxide removal.

The legislation requires funded projects to secure matching private sector carbon removal purchases and permanently retire any associated carbon credits. Individual grants are capped at $12.5 million per project sponsor and $25 million per technology category. Projects must incorporate community benefit mechanisms and verify carbon removals through independent third-party validation using industry protocols. The Air Resources Board must ensure removals remain sequestered for at least 100 years.

Implementation begins July 2026, with the Air Resources Board required to adopt detailed program guidelines by January 2028. These guidelines will define project eligibility criteria, mandate in-state project locations, and prohibit the use of removed carbon dioxide for enhanced oil recovery. The board must also conduct annual surveys of carbon removal projects statewide and publish regular reports on program activities and removal costs through 2035.